We know how much time and hard work you put into making your business a success so it’s only natural you should want to protect that, which is where business insurance comes in. However with the amount of different business insurances on the market it can be confusing with what type you need and how much you need to cover. Most companies will need more than one type of business insurance so we hope the below can help you decide, simply follow the links for more information.
Types of Business Insurance:
- Public Liability Insurance
- Tradesmen Insurance
- Professional Indemnity Insurance
- Shop Insurance
- Employers Liability Insurance
- Restaurant and Pub Insurance
- Business Premises Insurance
- Business Assets Insurance
- Specialist Business Insurance
Good to Know…
- Employers Liability Insurance is a legal requirement for all businesses with 1 or more members of staff
- You are likely to need your company details and turnover, employee payroll information and details of any previous claims to be able to get an accurate business insurance quote
- Failure to have the right business insurance policy can result in a loss of custom, a loss of revenue and ultimately a loss of the entire business should the worst happen
- Ensure you compare like for like quotes, cheaper will sometimes means you are underinsured and although it may save money when taking out the policy it will cost you a lot more in the long run
- Check your excess fee, sometimes when the price is cheaper it could be because the excess is much higher
- Double check, triple check and double check again you are not in any event going to be left underinsured, it could end up costing you a fortune if you are
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UK Businesses Failing to Secure Adequate Insurance Cover
Earlier this year, the Airmic risk management group conducted a study to determine how much importance modern businesses are placing on corporate risk. The results clearly showed a significant gap between risk awareness and business insurance cover, with many businesses citing an understanding of the main risks faced by their business, yet failing to secure suitable cover to financially protect themselves against these particular hazards or uncertainties. Ultimately, we’re beginning to see a trend for businesses to purposefully shun business insurance, leaving them vulnerable to expensive payouts and serious reputational damage.
The most common risk that modern businesses are attempting to brush under the rug is reputational risk, with a whopping 93 percent of businesses questioned claiming they do not have suitable cover in place to protect themselves against poor standing within the industry or community. Cyber risks and contract risks are also proving not to be a priority for businesses, despite many understanding that they are vulnerable to these sorts of liabilities. On the other hand, the good news is that most businesses have ‘main’ business cover, including Employer’s Liability Insurance (a legal requirement), Professional Indemnity Insurance, and Public Liability Insurance. In fact, only 3 percent of businesses who participated in the survey did not have valid Public Liability Insurance at the time.
Why Are Businesses Failing to Protect Themselves?
The Airmic group discovered many different reasons for businesses to fail to arrange suitable business cover to protect themselves against dangers, but there are two primary reasons why modern businesses are leaving themselves vulnerable to financial and reputational damage:
- Rise in Claims Challenges
Claims challenges have risen by 5 percent in the past year alone, leaving many businesses contemplating whether or not business insurance is really worth the cost. However, what we can see is that the majority of challenges are made due to policy holder error – late notifications, for example, or failing to provide the details necessary to process the claim.
- Rising Business Insurance Costs
As with many types of financial product, costs are continuing to rise. However, business insurance shouldn’t make a significant dent in your business finances. By comparing business insurance costs online using price comparison tools, it’s quick, easy, and simple to see what the major providers are offering for businesses, and find a business insurance premium that ticks all the boxes.
Do YOU Need Public Liability Insurance?
For some businesses, knowing what types of insurance are necessary can be confusing. However, under the Employer’s Liability Act (1969), only Employer’s Liability Insurance is a legal requirement for most businesses – other types of insurance products, such as Public Liability Insurance and Professional Indemnity Insurance, are voluntary (except for horse riding schools which do have a legal obligation to obtain Public Liability Insurance). So which types of insurance do you really need?
Cutting Corners with Business Insurance
Sadly, we’re seeing a growing trend for businesses – particularly start-ups and small business – to cut corners wherever possible to save money. Regardless of whether or not your business is required by law to have Public Liability Insurance, this is one of the most important types of business insurance and certainly a product that businesses should not overlook. What Public Liability Insurance does is provide financial protection for businesses in case of accident or injury of members of the public, or their property, either on your premises, or as a result of your actions and behaviours.
You should consider Public Liability Insurance if…
- You interact with members of the public at your premises.
- You interact with members of the public at another venue, such their own premises.
- You attend trade shows or exhibitions with marketing materials such as banner and stands.
- You work with property or equipment belonging to the public.
According to UK statistics, a slip or fall is cited as the most common Public Liability Insurance claim, and ‘questionable’ claims are on the rise. In 2012 alone, fraudulent claims rose by a whopping 12 percent. What this demonstrates is that there has never been a more important time for businesses to arrange suitable Public Liability Insurance cover to protect their business should a claim be made.
Public Liability Insurance Deals
Whether your business deals with the public on a daily basis – a shop, for example – and you’re looking for comprehensive cover, or whether you interact with the public sporadically and are searching for basic coverage for a bit of added protection, there’s no reason why Public Liability Insurance should have to make a significant impact in business finances. For all types of business insurance – Public Liability Insurance, Professional Indemnity Insurance, and Employer’s Liability Insurance – you can find an attractive premium and suitable coverage by comparing business insurance deals online. Offering great premiums from major UK providers, you’ll find the right deal for you at compareyourbusinesscosts.com.
The Business Insurance you need.
Different business will require different types of cover and many business insurance policies will consist of a number of separate policies all bought under one umbrella. Our pricing tool will go through a few questions to help you decide what cover you need.
Although cover will vary from industry to industry the three main policies that all businesses need to consider are Employers Liability Insurance, Public Liability Insurance and Professional Indemnity Insurance.
If you have any employees, contractors, casual workers or temporary staff, you’re legally required to take out employers’ liability insurance. It’ll cover claims from employees who’ve been injured or become seriously ill as a result of working for you. The repercussions of not having this business insurance are extremely serious. If someone injures themselves and you don’t have cover you can face up to 14 years in prison and an unlimited fine.
Public liability insurance is important for all companies that deal with the public in any way. It covers you if someone is injured or killed, or their property damaged because of your business. We can offer policies between £1 million and £5 million in cover using our online pricing tool.
Professional indemnity insurance is another key policy worth considering for all businesses that give advice or offer any services to other businesses. At the core of any business is the people and the hazardous side of that is that mistakes can happen. What may be a completely unintentional piece of wrong advice can have serious implications on a customer or client. So if they suffer a financial loss because of you or one of your employees, professional Indemnity Insurance will protect you.
Why do you need it?
In your personal life you are likely to be insured for car insurance, home insurance, life insurance etc. So it makes sense to protect the one thing that gives you the ability to pay for all those personal expenses.
We understand how your business is vital to you so if you needed any more reason to protect your business we have listed the three main reasons.
- Business Insurance protects your employees – Where would your business be without your team? One of the most important parts to any business, it pays to protect them. Any employee who has an accident or gets ill at work could be entitled to compensation or financial aid from you if you are found to be negligent. Employers Liability Insurance covers you for this and is an essential cover if you have staff – even if it’s just on a part time or casual basis.
- Business Insurance protects your customers and the public – Another key part of having a successful business is your reputation. So if your products, services or premises causes an injury to either a customer or member of the Public Liability Insurance can cover the payments for you.
- Business Insurance Protects your Assets – Would your business go under if you had your premises, equipment or vehicles stolen or damaged? Many would face hardship especially if it meant losing an important contract. Business insurance can protect you from this.
So to get your free online quote use our easy tool and put your mind at rest knowing your business is in safe hands.
An Employer’s Guide to Employers Liability Insurance in the UK
Employer’s liability insurance in the UK is a legal requirement for many businesses. Despite this, the information available for businesses isn’t always clear, and it can often be confusing to figure out whether your business requires this type of business insurance, and what level of coverage you need. This handy guide aims to clear up any confusion surrounding employer’s liability insurance in the UK.
What is Employer’s Liability Insurance
Quite simply, employer’s liability insurance in the UK protects you and your business financially should any employee make a claim for accident, injury, or ill health sustained while working in the premises, or as a direct result of their work duties or working conditions. The Health and Safety Executive (HSE) reports that 169,000 people take more than 7 days off work each year injuries sustained in the workplace – if any of those employees were to make a claim, employer’s liability insurance ensures the business has access to the funds necessary to compensate the worker.
Is Employer’s Liability Insurance in the UK a Legal Requirement?
Yes and no. If you are the only person working for your business, you do not need employer’s liability insurance (you’re not going to claim against yourself, right?). However, your responsibilities increase the moment you begin paying another individual for their services, or asking another individual to perform business-related tasks. Even if you do not official have any employees, anybody that works for you can reasonably make a claim. This includes interns, volunteers, trainees, temp staff, and so on. Even freelancers who outsource work will need to ensure they’re covering their backs.
How Much Cover Do I Need?
The legal requirement for employer’s liability insurance in the UK is a minimum cover of £5 million. However, the level of cover you require really depends on the nature of your business, and the type of venue or premises you work in. While it’s important never to underestimate the risk of accidental trips and falls in a standard office building, some industries do present a wider range of risks, such as garages, for example, construction firms, or businesses that employ maintenance crew who may be working amongst asbestos containing materials. Many businesses do opt for enhanced cover.
I’ve Got Employer’s Liability Insurance – Is That All I Need?
In order to be law complaint, it’s not enough to simply take out employer’s liability insurance in the UK. Your business can be fined if you allow your cover to expire, and this can cost you up to £2500 for each and every day you remain unprotected. You also have a legal requirement to display your employer’s liability insurance certificate somewhere that your employees have access to it. This could be in an office-based record book held by HR, or, as many businesses are doing these days, digitally. If you opt to display digitally, you need to ensure your employees know where to find it.
How Do I Get Employer’s Liability Insurance in the UK?
Most major business insurance firms will offer employer’s liability insurance, so this type of business insurance is very easy to arrange. Securing cover for a price that helps to keep you within budget, however, is another matter. The good news is that there are ways to get a good deal on your employer’s liability insurance in the UK. Compare employer’s liability insurance premiums with compareyourbusinesscosts.com’s online comparison tool that will give you quick and easy access to some of the best deals available for small businesses in the UK.
Are YOU Breaking the Law?
You’ve registered with Companies House, you’re paying your taxes, and you’ve arranged all the necessary training your staff need. You’re doing everything to ensure you’re running a safe, profitable, and legitimate business, but could you be breaking the law without even realising it? According to a recent survey by Aviva, one in ten small companies in the UK are failing to meet their legal obligations when it comes to securing adequate insurance cover for their business.
Aviva’s research found that an estimated 11 percent of SMEs in the UK don’t know that employer’s liability insurance is a legal requirement for all businesses who are currently trading. Many are even having to ask ‘what is employer’s liability insurance?’. We’re seeing a growing trend for SMEs who are trying to cut corners financially to turn to friends and family for business and legal advice, rather than consulting a professional, which is believed to be playing a role in the knowledge gap. While 38 percent of SME owners are happy to ask for advice from their family, only 9 percent would be happy using a legal advisor,the study shows.
What You Need to Know About Employer’s Liability Insurance
If you think you might be breaking the law by not having the correct business insurance, here’s what you need to know:
- Even if your company has just one employee, you still need employer’s liability insurance by law. This covers you in case an employee is injured on the premises or when working offsite.
- If your business is found to be breaking the law by not having employer’s liability cover, you can be fined up to £2500 for each and every day that your company remains uninsured.
- Although employer’s liability insurance in the UK is flexible, you are still required to have a certain level of cover to meet legal requirements. Currently this stands as £5 million.
Meeting Your Legal Requirements
Your business must have adequate employer’s liability insurance in order to be legally compliant. If you don’t currently have business insurance, or are interested in switching your supplier to secure a better rate, you can find the best deals available by comparing employer’s liability quotes online. To compare employer’s liability insurance, use the simple online comparison tool at compareyourbusinesscosts.com. You’ll be given a clear, straightforward run down of the best premiums and cover for your business, ensuring you’re financially protected and legally compliant.
Small Business Insurance for Home-Based Companies
There are around 2.9 home-based businesses in the UK today, and government figures suggest that around 70 percent of new start ups begin in the home. Home-based businesses have become a major government focus, with the introduction of new schemes to make home working much simpler for small businesses that ‘fire up the economic engines’. However, one aspect that hasn’t yet become more straightforward is small business insurance. As a home worker, it can be difficult to understand exactly what cover you need for your business – and whether you even need it at all!
Insurance firm Home Protect reports that there are an estimated 13 percent of home-based companies that employ staff without having adequate employer’s liability insurance in place. By doing so, these businesses are putting themselves at risk – not only in terms of claims, but also because employer’s liability insurance is a legal requirement for any business that hires employees. If you’re unsure what small business insurance you need, here’s a handy guide to help you out:
Employer’s Liability Insurance
As we’ve looked at, if you pay anyone other than yourself to undertake business-related tasks, then you’re required by law to take out employer’s liability insurance. This covers your business financially should somebody that works for you make a claim for accident, injury, mistreatment, or any other type of claim against your company. Consider it a small business insurance necessity.
Do you really need to add contents cover to your small business insurance package if you already have contents insurance for your home? Yes. Personal contents cover will not be valid for any equipment that you use for your business, or any business stock kept in your property. Fortunately, it’s easy to upgrade your content insurance to an ‘all risk’ policy which includes business assets.
Public Liability Insurance
Do you regularly have members of the public entering your home – if you’re a hairdresser, or an IT consultant, for example? If members of the public come to your property for business purposes, you will need public liability cover as part of your small business insurance. It protects you and your company if someone injures themselves on your property – tripping over a child’s toy, for example.
The situation with car insurance for home-based businesses is similar to that for contents cover – many personal policies will not be valid should you have an accident while using your car for work purposes, such as transporting stock. Once again, car insurance can easily be upgraded to cover business trips. Don’t forget if you drive abroad, you’ll need business travel insurance, too.
If you’re a new start up and trying to keep the outgoings to a minimum, small business insurance may bring you out in a cold sweat. Don’t panic. While it may seem like you need a lot of additional cover on top of your regular home insurance, it doesn’t have to break the bank. Make use of tools that allow you to compare small business insurance premiums online, and see what sort of packages insurance providers are offering for home-based businesses. You might be pleasantly surprised!
What Insurance do you Need for a Pop Up Business?
Mobile network EE reports that an estimated 30 percent of all new businesses that launch within the the next two years will be ‘pop up’ businesses. Pop up businesses are fast becoming a very attractive option for start ups due to increasing rent costs – more and more new businesses are instead searching for short term leases in already popular venues that will enable them to boost brand awareness and build a reputation before formally committing to a permanent premises. But what sort of business insurance do you need for a pop up business?
The good news is that, unless you’re eager to cover every possible base, in most cases you shouldn’t need specialist insurance. Pop up shop insurance is actually very simple. You should consider:
Employer’s Liability Insurance
Employer’s liability insurance in the UK isn’t just essential for businesses – it’s also a legal requirement. It doesn’t matter if you’re a big business or a small business, or if you have hundreds of employees or just a few hard workers – if you’re trading, you’ll need employer’s liability insurance to comply with current law. It covers any claims your employees may make against the business.
Public Liability Insurance
While not mandatory, if you’re dealing with the public it’s important to have public liability insurance which covers your pop up business for any claims made by the public. You’ll find that public liability insurance quotes for pop ups will vary considerably as your risk level will be closely associated with the venue. For market stalls, for example, the council may require a minimum £5 million cover.
Stock insurance is beneficial for pop up businesses for two reasons. Firstly, if you’re leasing a small section of an existing premises, you may not have any input with regard to security. If you don’t know how the premises is secured – or even whether it is adequately secured – you need protection against loss. Secondly, if you sell handcrafted, unique items that you can’t easily source from a wholesaler, a bit of financial assistance after a loss can go a long way towards getting you back on your feet.
Finding Pop Up Shop Insurance in the UK
If you’re working towards growing your pop up business, the last thing you need is to be spending hours trawling page after page of employer’s liability insurance quotes and so on. Savvy start ups are showing a trend for making use of online comparison tools that do all the hard work for them. Compare business insurance for your pop up company online at compareyourbusinesscosts.com. You’ll have all the information you need to make an informed decision right at your fingertips!